FAQs

The current Kingfish share price is at the top of this page. Alternatively you can ask any sharebroker, check in major newspapers or visit www.nzx.com and type in the ticker code "KFL" (for shares).

Please contact our share registrar, Computershare:

Computershare Investor Services Limited
Level 2, 159 Hurstmere Road Takapuna
Private Bag 92119 Auckland
Telephone: 09 488 8777
Fax: 09 488 8787
Email Computershare

Kingfish is a registered Portfolio Investment Entity (PIE) for tax purposes. The PIE regime has significant advantages for shareholders:

·         New Zealand tax resident investors:

• Natural person Shareholders or Trustees do not have to include dividend income from Kingfish in their tax return (although they can elect to include such dividends, which may be a benefit if the taxpayer is on a marginal tax rate that is lower than 28% and wants to claim imputation credits attached at the higher rate of 28%).
• Other shareholders only have to include fully imputed dividends as assessable income, in which case the imputation credits should usually fully offset any tax liability. To the extent that the dividend is not fully imputed, the dividend should be treated as excluded income (i.e. not taxable).
• No Resident Withholding Tax is withheld on distributions to New Zealand resident investors.

·         Non-resident investors:

• To the extent that a non-resident investor receives a dividend that is not fully imputed, the dividend should not have Non Resident Withholding Tax (NRWT) deducted in New Zealand.
• NRWT may be withheld on fully imputed dividends (unless an applicable double tax treaty provides otherwise).  Where this is the case, the investor will receive an additional supplementary dividend. This should compensate the investor for the amount of NRWT withheld on the dividend.
• The above refers to New Zealand tax only, the tax position of each investor will need to also be considered in their relevant jurisdiction.

·         Imputation credits will be attached to dividends to the fullest extent possible.

·         There is no tax on the distribution of capital gains to shareholders.

The above comments do not constitute tax advice to investors, as tax implications will depend on each investor's tax profile and circumstances. We encourage shareholders to seek their own tax advice.

The net asset value (NAV) per share represents the total assets of a fund or company (investments and cash) minus any liabilities, divided by the number of shares on issue (excluding treasury stock). The Kingfish NAV is calculated at the close of business each Wednesday and at month end and is announced to the NZX the following day. We update the website with the latest NAV after it has been announced to the market.

The NAV per share is calculated by taking the total number of shares held in a portfolio company, multiplied by the share price at market close. This calculation is completed for each company in the portfolio and added to the cash amount held to get the gross asset value (GAV) of the portfolio. Tax and other expenses are deducted from the GAV to provide the NAV. The NAV is divided by the number of shares on issue (excluding treasury stock) to provide the NAV per share.

The adjusted NAV per share represents the total assets of Kingfish (investments and cash) minus any liabilities (expenses and tax), divided by the number of shares on issue. It adds back dividends paid to shareholders and adjusts for:

• the impact of shares issued under the dividend reinvestment plan at the discounted reinvestment price;
• shares bought on market (share buybacks) at a price different to the NAV, and;
• warrants exercised at a price different to the NAV at the time exercised.

Adjusted NAV assumes all dividends are reinvested in the company’s dividend reinvestment plan and excludes imputation credits.

The directors believe this metric to be useful as it reflects the underlying performance of the investment portfolio adjusted for dividends, share buybacks and warrants, which are a capital allocation decision and not a reflection of the portfolio’s performance.

The TSR combines the share price performance, the warrant price performance (when warrants are on issue), the net value of converting warrants into shares and dividends paid to shareholders.

TSR assumes:

• all dividends paid are reinvested in the company’s dividend reinvestment plan at the discounted reinvestment price and exclude imputation credits, and;
• all shareholders that have received warrants (for free), have subsequently exercised their warrants at the warrant expiry date and bought shares (if they were in the money).

The directors believe this metric to be useful as it reflects the return of an investor who reinvests their dividends and, if in the money, exercises their warrants at warrant maturity date for additional shares. No metric has been included for investors who choose other investment options.

It is common for listed investment companies such as Kingfish to have a share price that is different to the NAV per share. Where the share price is lower than the NAV per share, the shares are said to be trading at a discount. Where the share price is higher than the NAV per share, the shares are trading at a premium. There can be many reasons for the shares trading at a value different to the underlying NAV including expectations of future earnings and market sentiment.

A share buyback is when a company buys back their own shares on-market. These shares are held as treasury stock and are available to be reissued to the market via the company’s dividend reinvestment plan.

Kingfish will only buy back shares if the discount to the last published net asset value, after adjusting for any changes in the S&P/NZX50G index since the last published net asset value, is greater than 6%.

In return for the performance of its duties as Manager, Fisher Funds is entitled to be paid:

• Management Fee: 1.25% (plus GST) per annum of the gross asset value, calculated weekly and payable monthly in arrears. The fee reduces if the Manager underperforms, thereby aligning the Manager's interests with those of the Kingfish shareholders. For every 1% underperformance (relative to the change in the NZ 90 Day Bank Bill Index) the management fee percentage is reduced by 0.1%, subject to a minimum 0.75% per annum management fee.
• Performance Fee: Fisher Funds may earn an annual performance fee of 10% plus GST of excess returns over and above the performance fee hurdle return (being the change in the NZ 90 Day Bank Bill Index plus 7%) subject to achieving the High Water Mark ("HWM"). The total performance fee amount is subject to a cap of 1.25% of the adjusted net asset value (prior to performance fees) and is settled fully in cash.
  
  The HWM is the dollar amount by which the net asset value per share exceeds the highest net asset value per share (after adjustment for capital changes and distributions) at the end of any previous calculation period performance fee was payable, multiplied by the number of shares at the end of the period.

Kingfish shares are listed on the NZX Main Board and trade under ticker code "KFL".  At times you can also choose to invest in Kingfish by buying Kingfish warrants. There are currently no warrants on issue.

If you would like to invest in Kingfish, simply purchase shares (or warrants when they are on issue) through a sharebroker. Warrant holders need to exercise their warrants on the exercise date to convert their warrants into Kingfish shares. See our warrants section for more information.

A list of NZX recommended brokers can be found here.

Kingfish does not charge entry or exit fees when shareholders purchase or sell their shares or warrants, although transaction costs will be charged when buying or selling through a sharebroker.